The Labour-led government has delivered a restrained and cautious Budget in its first year, keeping money in the kitty instead of a major spend up.

Photo: RNZ / Rebekah Parsons-King

It is investing more money in health, education and housing while also forecasting a more than $3bn surplus this year.

Finance Minister Grant Robertson said the coalition government was committed to being responsible - fiscally, socially and environmentally.

"The government is placing the wellbeing of people at the centre of all its work," Mr Robertson said.

Health

The cost of GP visits is set to drop by $20-$30 for the roughly 540,000 people carrying a Community Services Card.

Anyone living in state housing or receiving the accommodation supplement or income-related rents will now also be eligible for one of those cards.

That will cost more than $360m in new funding over four years.

Watch a live feed of Grant Robertson's speech and the debate in Parliament here:

The Budget delivers free doctor visits for more children, with under-14s now eligible, up from under 13-year-olds. That means about 56,000 more young people will be eligible, but it won't kick in until December.

Housing

The government is committing to build 1600 state houses a year - up from Labour's original promise of just 1000.

That will primarily be funded through more borrowing - up to $2.9 billion from third parties - and a further $900m from Housing New Zealand's operations. The Budget commits another more than $230m over four years.

Analysis - The Labour party hammered the previous government on housing, accusing them of presiding over a crisis of rising. But can the government keep its promises on housing? Patrick O'meara asks. Audio